Recently, Panzhihua V-Ti-bearing hi tech Industrial Development Zone, many enterprises to waste water and other acts by Jinsha River CCTV exposure, Sichuan provincial environmental protection department in conjunction with the Panzhihua government to set up a joint investigation by one investigation of high-tech enterprises in the zone, most of the local titanium, titanium dioxide enterprises gradually shut down.

Panzhihua titanium dioxide, titanium concentrate production capacity ranks first in the domestic production capacity. At present, China’s titanium dioxide production capacity of 3 million 700 thousand tons, Panzhihua titanium dioxide production capacity of 600 thousand tons, accounting for 17% of national production, titanium concentrate production capacity accounted for more than the total production capacity of 70%, the Panzhihua area of titanium dioxide, titanium concentrate production capacity ranks first in the country.

Pollution incident forced environmental verification, policy overweight is expected to boost the titanium dioxide prices continued to rise. Titanium dioxide industry is heavily polluting industries, product emissions, high energy consumption, is an important monitoring object of environmental protection in china. The global titanium dioxide industry, industry concentration is high, and longmang billions after the completion of the restructuring, production capacity reached 560 thousand tons, becoming the world’s fourth largest titanium dioxide enterprises, after DuPont, Huntsman and Koster, the world’s top 7 enterprises in titanium dioxide production capacity accounted for the total global production capacity of 60%, while China’s titanium dioxide production about 70 enterprises occupy the total global production capacity of 35%, and the sulfuric acid method, serious environmental pollution and the industry is relatively dispersed, with the elimination of environmental upgrades of small and medium-sized enterprises, the titanium dioxide industry is expected to gradually concentrated. The Panzhihua incident, the high tech Zone in the start time of small and medium enterprises, titanium concentrate supply contraction to promote the cost of titanium dioxide to go high, the superposition of titanium dioxide industry production capacity, product prices are expected to continue to rise.

Billions (002601) acquisition of Sichuan longmang, industry chain advantages, is expected to benefit from the product price priority. The company in September through 9 billion increase the completion of the acquisition of Sichuan longmang, Lomon titanium industry with large vanadium titanium magnetite resources, currently has 600 thousand tons of titanium ore mining capacity, forming a “- vanadium titanium magnetite ilmenite concentrate – titanium dioxide,” a complete industrial chain, the new mining area and longmang plans to gradually in the development of the Panzhihua area, will provide for billions of titanium concentrate, thereby reduce the production cost. We believe that the Panzhihua high tech Zone will also lead to discontinued events titanium ore prices, has the advantage of the industrialization of billions company will benefit from a priority.